The 1987 Rhyme Rescue Psychology Born. Mannarino

Added: 2026-05-28

[00:00:00]The last Fed chair to receive this kind of White House staged event was Alan Greenspan in 1987.

[00:00:07]Greenspan was sworn in at the White House on August 11th, 1987.

[00:00:13]Two months later, Black Monday hit.

[00:00:17]No coincidence here. There was a reason for that. On October 19th, 1987, the Dow fell 22.6% in one day, still the largest one-day percentage decline in Dow history.

[00:00:29]Greenspan then issued his now famous liquidity support statement. Does that already sound familiar to you? Okay, saying the Fed stood ready to serve as a source of liquidity support to the economic and financial system. Sound familiar, guys? Major key point, that moment, Greenspan's liquidity support statement birth, or gave birth to, the rescue psychology market still worship today, and I used worship as a reason as on purpose.

[00:01:01]Alan Greenspan set the stage. If the market breaks, the Fed steps in.